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CLPS Incorporation Announces Filing of Registration Statement for Proposed Initial Public Offering of JAJI Global Incorporation

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CLPS Incorporation announced that its majority-owned subsidiary, JAJI Global, has filed for an IPO on the Nasdaq Capital Market. JAJI, which specializes in IT services for automotive and securities industries, currently has 10 million shares, with CLPS holding a 60% stake. Aegis Capital Corp. will act as the sole underwriter.

The IPO proceeds will fund product development, M&A activities, global expansion, and operations. JAJI offers IT consulting, business management services, and proprietary IT solutions. While the exact number of shares and price range are yet to be determined, CLPS expects to maintain a significant voting and economic interest post-IPO.

CLPS Incorporation ha annunciato che la sua controllata di maggioranza, JAJI Global, ha presentato richieste per un'IPO sul Nasdaq Capital Market. JAJI, specializzata in servizi IT per i settori automobilistico e delle securities, attualmente dispone di 10 milioni di azioni, con CLPS che detiene una partecipazione del 60%. Aegis Capital Corp. agirà come unico sottoscrittore.

Il ricavato dell'IPO finanzierà lo sviluppo di prodotti, attività di M&A, espansione globale e operazioni. JAJI offre consulenza IT, servizi di gestione aziendale e soluzioni IT proprietarie. Anche se il numero esatto di azioni e la fascia di prezzo devono ancora essere determinati, CLPS prevede di mantenere un significativo interesse di voto ed economico dopo l'IPO.

CLPS Incorporation anunció que su filial de mayoría, JAJI Global, ha presentado una solicitud para una OPI en el Nasdaq Capital Market. JAJI, que se especializa en servicios de TI para las industrias automotriz y de valores, actualmente tiene 10 millones de acciones, con CLPS poseyendo una participación del 60%. Aegis Capital Corp. actuará como el único suscriptor.

Los ingresos de la OPI se destinarán al desarrollo de productos, actividades de fusiones y adquisiciones, expansión global y operaciones. JAJI ofrece consultoría en TI, servicios de gestión empresarial y soluciones de TI propias. Aunque el número exacto de acciones y el rango de precios aún están por determinarse, CLPS espera mantener un interés significativo tanto en votos como económico tras la OPI.

CLPS 설립은 그 지분이 다수인 자회사인 JAJI Global가 Nasdaq Capital Market에서 IPO를 제출했다고 발표했습니다. JAJI는 자동차 및 증권 산업을 위한 IT 서비스 전문 업체로, 현재 1천만 주의 주식을 보유하고 있으며 CLPS는 60%의 지분을 보유하고 있습니다. Aegis Capital Corp.가 단독 인수자로 활동할 예정입니다.

IPO 수익금은 제품 개발, M&A 활동, 글로벌 확장 및 운영 자금에 사용될 것입니다. JAJI는 IT 컨설팅, 비즈니스 관리 서비스 및 독점 IT 솔루션을 제공합니다. 정확한 주식 수와 가격 범위는 아직 결정되지 않았지만, CLPS는 IPO 이후에도 중요한 투표권 및 경제적 이익을 유지할 것으로 기대하고 있습니다.

CLPS Incorporation a annoncé que sa filiale majoritaire, JAJI Global, a déposé une demande d'introduction en bourse (IPO) sur le Nasdaq Capital Market. JAJI, spécialisée dans les services informatiques pour les secteurs automobile et des valeurs mobilières, détient actuellement 10 millions d'actions, avec CLPS détenant une participation de 60%. Aegis Capital Corp. agira en tant que seul souscripteur.

Les produits de l'IPO serviront à financer le développement de produits, les activités de fusions et acquisitions, l'expansion mondiale et les opérations. JAJI propose des services de conseil en informatique, de gestion d'entreprise et des solutions informatiques propriétaires. Bien que le nombre exact d'actions et la fourchette de prix restent à déterminer, CLPS s'attend à maintenir un intérêt significatif en matière de vote et économique après l'IPO.

CLPS Incorporation gab bekannt, dass ihre mehrheitlich gehaltene Tochtergesellschaft, JAJI Global, einen Antrag auf einen Börsengang (IPO) am Nasdaq Capital Market gestellt hat. JAJI, das auf IT-Dienstleistungen für die Automobil- und Wertpapierbranche spezialisiert ist, hat derzeit 10 Millionen Aktien, wobei CLPS einen Anteil von 60% hält. Aegis Capital Corp. wird als alleiniger Underwriter auftreten.

Die Mittel aus dem IPO werden zur Finanzierung von Produktentwicklungen, M&A-Aktivitäten, globaler Expansion und Betrieb verwendet. JAJI bietet IT-Beratung, Unternehmensmanagementdienste und eigene IT-Lösungen an. Obwohl die genaue Anzahl der Aktien und die Preisrange noch festgelegt werden müssen, erwartet CLPS, nach dem IPO einen signifikanten stimmberechtigten und wirtschaftlichen Einfluss zu behalten.

Positive
  • CLPS currently holds 60% ownership of JAJI's 10 million shares
  • CLPS will maintain significant voting and economic interest post-IPO
  • IPO proceeds will fund strategic growth initiatives including M&A and expansion
Negative
  • Share dilution expected for CLPS's stake in JAJI post-IPO
  • Uncertain pricing and number of shares for the offering
  • Registration statement not yet effective with SEC

Insights

The IPO filing of JAJI Global, CLPS's majority-owned subsidiary, represents a strategic move to unlock shareholder value. With CLPS currently holding 60% of JAJI's 10 million shares, this spin-off could potentially create significant value through independent market valuation. The decision to maintain a significant voting interest post-IPO suggests a balanced approach between raising capital and retaining control. JAJI's focus on automotive and securities IT services positions it in two high-growth sectors. The appointment of Aegis Capital as the sole underwriter, while not a top-tier investment bank, is appropriate given the company's size. However, the lack of specific details about the offering size and price range makes it challenging to assess the potential impact on CLPS's market value. For retail investors, this development could offer an interesting opportunity to gain exposure to China's specialized IT services sector through two separate publicly traded entities.

A simpler way to understand this: Imagine CLPS as a parent company that owns most of a successful child company (JAJI). Now, they're letting the child company sell its own shares to the public while still keeping control. This could make both companies worth more money separately than they were together.

JAJI's specialization in automotive and securities IT services positions it strategically in two sectors undergoing rapid digital transformation. The company's dual focus on consulting services and proprietary IT products creates multiple revenue streams and competitive advantages. The IPO proceeds earmarked for product development and M&A suggest a robust growth strategy focusing on both organic expansion and strategic acquisitions. The global expansion plans indicate potential market diversification beyond their current geographic footprint.

The company's business model aligns with current industry trends where specialized IT service providers are increasingly developing their own software products to create recurring revenue streams and higher margins. For the average person, think of JAJI as a tech company that both helps car companies and financial firms with their computer systems AND creates its own software products to sell to them - similar to how a contractor might both build houses for others and develop their own properties.

HONG KONG, Dec. 19, 2024 /PRNewswire/ -- CLPS Incorporation (the "Company" or "CLPS") (Nasdaq: CLPS), today announced that its majority-owned subsidiary, JAJI Global Incorporation ("JAJI"), has filed a registration statement on Form F-1 with the U.S. Securities and Exchange Commission (the "SEC") relating to a proposed initial public offering of JAJI's ordinary shares.

Following the offering, CLPS expects to hold a significant voting interest in JAJI along with a corresponding economic interest in its subsidiaries. The number of shares to be offered and the price range for the offering have not yet been determined. JAJI intends to list its common stock on The Nasdaq Capital Market.

This IPO marks a significant milestone in JAJI's development and is expected to provide strong financial support for its future expansion and technological innovation.

JAJI specializes in providing information technology (IT) services to the automotive and securities industries. With advanced technology and strong market position, JAJI has achieved significant industry accomplishments. In addition to IT and business management consulting services, as well as customized IT solutions, JAJI has developed a range of proprietary IT products. As market demand continues to grow, JAJI plans to enhance its market competitiveness through this IPO and advance its business goals.

According to the F-1, JAJI currently has a total share capital of 10,000,000 shares, of which CLPS holds 60%. The funds raised from this IPO will primarily be used for product development, mergers and acquisitions, global expansion, and company operations to drive JAJI's sustained growth.

Aegis Capital Corp., will be acting as the sole underwriter and book-runner for the proposed offering.

A registration statement relating to these securities has been filed with the SEC but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release is being made pursuant to, and in accordance with, Rule 134 under the Securities Act of 1933, as amended (the "Securities Act"), and shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any Internal state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Any offers, solicitations or offers to buy, or any sales of securities will be made in accordance with the registration requirements of the Securities Act.

Mr. Raymond Lin, Chief Executive Officer of CLPS, stated, "We are immensely proud of JAJI as it embarks on its journey to the Nasdaq market. We are confident that listing on Nasdaq will unlock JAJI's full potential for technological innovation and market expansion, delivering significant value to our shareholders."

Mr. Bryan Lam, Chief Executive Officer of JAJI, expressed, "We are thrilled about JAJI's IPO. This is not only an important milestone in our growth but also an opportunity to share the benefits of our success with investors. By going public, we will be able to strengthen our market position, attract top talents, and propel our long-term strategic goals forward."

About CLPS Incorporation

Headquartered in Hong Kong, CLPS Incorporation is a leading global information technology ("IT") consulting and solutions service provider, primarily focused on serving global institutions in the banking, wealth management, e-commerce, and automotive sectors. As an IT services provider for a growing network of clients within the fintech and financial services industry, CLPS has expanded its business beyond core IT services, venturing into the loan, e-commerce, academic education, and tourism sectors. Through its diversified offerings, CLPS is committed to providing comprehensive services and solutions for its clients. The Company maintains 19 delivery and/or research & development centers to serve different customers in various geographic locations. Mainland China centers are located in Shanghai, Beijing, Dalian, Tianjin, Xi'an, Chengdu, Guangzhou, Shenzhen, Hangzhou, and Hainan. The remaining 9 global centers are located in Hong Kong SAR, USA, Japan, Singapore, Malaysia, India, Philippines, Canada, and UAE. For further information regarding the Company, please visit: https://ir.clpsglobal.com/, or follow CLPS on Facebook, InstagramLinkedIn, X (formerly Twitter), and YouTube.

Forward-Looking Statements

Certain of the statements made in this press release are "forward-looking statements" within the meaning and protections of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements with respect to the Company's beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance. Known and unknown risks, uncertainties and other factors, which may be beyond the Company's control, may cause the actual results and performance of the Company to be materially different from such forward-looking statements. All such statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties related to the Company's expectations of the Company's future growth, performance and results of operations, the Company's ability to capitalize on various commercial, M&A, technology and other related opportunities and initiatives, as well as the risks and uncertainties described in the Company's most recently filed SEC reports and filings. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at http://www.sec.gov. We have no obligation and do not undertake to update, revise or correct any of the forward-looking statements after the date hereof, or after the respective dates on which any such statements otherwise are made.

Contact:

CLPS Incorporation
Rhon Galicha
Investor Relations Office
Phone: +86-182-2192-5378
Email: ir@clpsglobal.com

Cision View original content:https://www.prnewswire.com/news-releases/clps-incorporation-announces-filing-of-registration-statement-for-proposed-initial-public-offering-of-jaji-global-incorporation-302336182.html

SOURCE CLPS

FAQ

What percentage of JAJI does CLPS (CLPS) currently own?

CLPS currently owns 60% of JAJI's 10 million total shares.

Who is the underwriter for JAJI's IPO?

Aegis Capital Corp. is acting as the sole underwriter and book-runner for the proposed offering.

What will JAJI use the IPO proceeds for?

The IPO proceeds will be used for product development, mergers and acquisitions, global expansion, and company operations.

Which market will JAJI list its shares on?

JAJI intends to list its common stock on The Nasdaq Capital Market.

What industries does JAJI primarily serve?

JAJI specializes in providing IT services to the automotive and securities industries.

Will CLPS maintain control of JAJI after the IPO?

CLPS expects to hold a significant voting interest in JAJI along with a corresponding economic interest post-IPO, though the exact percentage is not specified.

CLPS Incorporation

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